South Australian Current Acts South Australian Current Acts13A—Loans and investments by trustees not breaches of trust in certain
circumstances
(1) If a trustee lends
money on the security of property, the trustee is not in breach of trust by
reason only of the amount of the loan in comparison to the value of the
property at the time when the loan was made—
(a) if
it appears to the court—
(i)
that, in making the loan, the trustee was acting on a
report as to the value of the property made by a person whom the trustee
reasonably believed to be competent to give such a report and whom the trustee
instructed and employed independently of any owner of the property; and
(ii)
that the amount of the loan did not exceed two-thirds of
the value of the property as stated in the report; and
(iii)
that the loan was made in reliance on the report; or
(b) if
the trustee is insured by a prescribed body carrying on the business of
insurance against all loss that may arise by reason of the default of the
borrower.
(2) If a trustee lends
money on the security of leasehold property, the trustee is not in breach of
trust by reason only that the trustee dispensed, either in whole or in part,
with the production or investigation of the lessee's title when making the
loan.
(3) This section
applies to transfers of existing securities as well as to new securities and
to investments made before or after the commencement of the Trustee
(Investment Powers) Amendment Act 1995 .